Tesla’s first quarter earnings report of this year does not show a promising sign, as both of its revenue and net income dropped when compared to the same period last year.
The auto firm reported that its 1Q25 total revenue only reached $19.34 billion, while its automotive revenue only reached $14 billion, a drop of 9% and 20% YoY, respectively.
Tesla stated this decline is due to the upgrade on its manufacturing lines to create a new version of its famous Model Y SUV, low average selling prices and sales incentives.
As for the net income, Tesla reported that its figure this quarter dropped from $1.39 billion last year to $409 million, a 71% plunge.
Tesla is facing a difficult year. Its CEO, Elon Musk, has involved himself with politics both in the U.S. and Europe, downgrading the company’s reputation and affecting the sales.
More importantly, the company also reported a 13% YoY drop in 1Q25 deliveries to 336,681 units.
Furthermore, President Donald Trump’s tariff plan is seemingly raising the price for electric vehicle parts and materials, possibly affecting the company’s production cost.
Its share this year now recorded a 41% drop and reported a worst quarterly drop the company has not experienced since 2022.
However, there is now a positive sign as Trump now confirmed that he has no plan to fire Federal Reserve Chair Jerome Powell, causing the company’s share to surge by almost 5% on Tuesday during the extended trading period.
Although Tesla did not promise any growth this year, there seems to be a revision in its strategy as the company stated that it will “revisit their 2025 guidance in their Q2 update.”
